PenFed Visa 5% Cashback on Gas now 3% + Annual Fee

Discussion in 'General Discussion | Credit Cards' started by klrsmith, Sep 23, 2013.  |  Print Topic

  1. klrsmith

    klrsmith Silver Member

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    Didn't see this anywhere, and I know this isn't specifically travel related, but it IS credit card related. I never really understood why no one (well not the travel bloggers anyway) talked about the PenFed Platinum Cash Visa - it WAS a great card with 5% cash back on Gas purchases made at the pump and credited directly back to your account - with 3 vehicles and a motorcycle, I saved a bundle every year.

    Like I said, WAS a great card. Just received a snail mail notice that there will be a $25 yearly fee and the 5% will now be 3% starting October 26th, 2013. At least they didn't call it an enhancement.

    There is an out - you can avoid these charges by obtaining a qualifying PenFed product - Checking account with $500 monthly direct deposits, Mortgage, Installment loan (vehicle, personal or student), etc. Unfortunately for me, I don't have or need one of those. Time to change strategies...
     
  2. rxgeek

    rxgeek Silver Member

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    A very small money market account will suffice.
     
  3. moongoddess

    moongoddess Silver Member

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    Sorry to hear that the issuing bank is making one of your favorite cards useless to you. That's never fun!

    As to why travel bloggers don't promote cash-back cards more often, well, the cynical side of me says it's because there's little benefit in churning them. The less cynical side of me notes that the folks who read and write travel blogs have very different travel goals than the average American (and most of the blogs are aimed at Americans). Cash back cards are pretty worthless if your goal is flying first-class to Europe or Asia and spending a week in a five star hotel. But most Americans fly domestic coach once or maybe twice a year, and are fine with booking at the Comfort Inn. Cash back cards work really well for that less expensive style of travel, and are probably the card the average person should carry.
     

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